Title | Does R&D Investment Drive Employment Growth? Empirical Evidence using Industry-Level from Japan |
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Type | Journal article |
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Authors | Shah, I.H., Kollydas, K., Lee, P.Y., Malki, I. and Chu, C. |
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Abstract | Strong demographic headwinds have motivated Japan to strengthen its economy by fostering innovation. This paper draws on a panel of business enterprises operating in 33 industries in Japan to examine how research and development (R&D) activities affect employment. Our findings suggest that employment gains are associated with innovation, both at the aggregate level and within groups of major industries. The positive impact of technological advancement is more pronounced in the manufacturing sector. The results reveal heterogeneous patterns of the key determinants of employment growth based on the level of industries’ routine intensity, but they accord well with the compensation theory concerning the connection between innovation and job creation. These results will be of interest for policymakers to design targeted economic strategies by supporting technological development in Japan and could also serve as a compass for other countries with similar workforce structure and macroeconomic characteristics. |
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Keywords | innovation |
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| R&D expenditure |
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| employment |
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| routine-intensity |
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| manufacturing |
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| industry-level analysis |
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Journal | International Journal of Finance & Economics |
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Journal citation | 29 (1), pp. 102-118 |
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ISSN | 1099-1158 |
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Year | 2024 |
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Publisher | Wiley |
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Publisher's version | License CC BY 4.0 File Access Level Open (open metadata and files) |
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Digital Object Identifier (DOI) | https://doi.org/10.1002/ijfe.2677 |
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Web address (URL) | https://onlinelibrary.wiley.com/doi/10.1002/ijfe.2677 |
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Publication dates |
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Published online | 12 Jul 2022 |
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Published in print | 2024 |
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